Building Neo-liberal Markets and Other Agendas: The Politics of Risk Management at AusAID

Abstract

This article analyses emerging approaches by donors to risk management, focusing on the case of the Australian Agency for International Development (AusAID). It suggests that AusAID's understanding and management of risk are expressions of particular political and social interests and, subsequently, that its approach to risk management is inherently political in nature. While AusAID's policies and guidelines on risk management identify a wide range of risks as being relevant to the agency's work – including risks to poverty reduction and sustainable development – in practice it has focused on managing risks to the building of neo-liberal markets, both within Australia and in developing countries, and the Australian government's foreign policy objectives. To illustrate these points, we present an analysis of AusAID's approach to risk management in a major economic governance project, the Philippines-Australia Partnership for Economic Governance Reforms. We conclude by indicating ways in which donor approaches to risk management can be revised to give greater attention to the needs of the poor and civil society, while acknowledging that such revisions may be contingent upon prior changes in the structure of power and interest and/or institutional characteristics of aid policy-making processes in donor countries.     

Export Growth and Development to Poor Rural Regions: a Meso-Scale Analysis of the Upper Limari

Abstract — The aim of this article is to explore the recent social and economic evolution of a rural region that was formerly one of the poorest in Chile but has been transformed by a productive specialisation in table grapes for export markets. The region is that of the Upper Limari in Chile's semi-arid Norte Chico. The analysis focuses on changes in four interrelated variables: productive investments; land markets; labour markets; and population distribution. Rapid growth in investment, the emergence of dynamic land markets, dramatic increases in labour productivity have transformed the agricultural sector. Small-scale farming has survived poorly due to lack of capital, technical problems and lack of bargaining power with the international fruit companies. The large-scale farmers have enjoyed better conditions and a reconcentration of land has occurred. However, the emergence of new productive activities in an area where labour alternatives have been historically scarce has provided new sources of income. Population is increasing in rural settlements linked to irrigated agroexportation and quality of life indicators have improved. Rural depopulation is not a feature of the region as a whole.     

Seducing the people: Populism and the challenge to democracy in South Africa

Recent ructions in South Africa's ruling African National Congress have been described from time to time in the media as signalling a dangerous shift towards ‘populism’. The article examines this contention. It argues that South Africa is witnessing a significant challenge to the founding precepts of constitutional democracy. This challenge emanates from the (populist) equation of democracy with ‘the will of the people’. The article unpacks some of the implications of reducing democracy to majoritarianism. It provides also an analysis of why populist appeals of various kinds have been so appealing to South African voters 15 years into democracy. The article argues that the challenges that are currently being experienced in relation to democratisation in South Africa have to do with the inherent tension between the animating ideology of democracy, which suggests that power resides with the people, and the practical functioning of democracy, which relies on the devolution of power to the representatives chosen by a section of the people who rely on order and predictability in the polity in order to govern in a workable way. Populist appeals, it is argued, exploit this tension. But what makes it possible for this strategy to succeed is the failure on the part of political elites to engage in the process of building democracy by way of inculcating respect for democratic values.     

Good Inflation, Bad Inflation: The Housing Boom, Economic Growth and the Disaggregation of Inflationary Preferences in the UK and Ireland

This article presents a comparative analysis of the determinants, sustenance and broader macroeconomic consequences of the ultimately unsustainable housing boom in Ireland and the UK in recent years. It examines, in particular, the role played by ostensibly depoliticised monetary policy in both contexts in the development of a house price bubble that has served to fuel consumer-led growth. It assesses the viability, sustainability and reproducibility of the private debt-financed consumer boom that house price inflation has generated. In the process it draws attention to the increasingly differentiated character of both government inflationary preferences and counter-inflationary performance—with the shift to official measures of inflation that exclude mortgage interest repayments and, in the UK at least, to the covert re-politicisation of monetary policy. It concludes by suggesting that governments may well not have time-inconsistent inflationary preferences so much as sectorally specific inflationary preferences. This might be summarised in terms of the aphorism: 'retail price inflation bad, house price inflation good'.